PepsiCo (PEP) ended the recent trading session at $139.88, demonstrating a -1.65% change from the preceding day's closing price. This change lagged the S&P 500's 0.64% gain on the day. On the other hand, the Dow registered a gain of 1.23%, and the technology-centric Nasdaq increased by 0.69%.
Prior to today's trading, shares of the food and beverage company had lost 1.92% lagged the Consumer Staples sector's loss of 0.94% and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of PepsiCo in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.24, indicating a 14.29% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $29.02 billion, up 4.44% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.12 per share and a revenue of $93.58 billion, signifying shifts of -0.49% and 0%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for PepsiCo. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% lower. Currently, PepsiCo is carrying a Zacks Rank of #3 (Hold).
Investors should also note PepsiCo's current valuation metrics, including its Forward P/E ratio of 16.63. This denotes a discount relative to the industry average Forward P/E of 16.78.
It's also important to note that PEP currently trades at a PEG ratio of 4.66. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Beverages - Soft drinks industry had an average PEG ratio of 2.03.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 201, this industry ranks in the bottom 18% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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PepsiCo, Inc. (PEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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